Tailor systems to tackle shrink

In the past year a key challenge for retailers has been to up the effectiveness of loss prevention to combat increasing shrinkage.

In 2009 the UK has seen its largest rise in shoplifting. With budgets under scrutiny, some retailers have cut back on spend. But others have focused on enhancing existing technologies and product protection strategies.

In the past, solutions may have beean price driven but must now be performance driven, protecting a wider range of product against a wider demographic of shoplifter. As retail is consolidated through store closures, the rising proportion of shrinkage for the remaining retailers is putting focus on the integrity of loss prevention strategies.

Loss prevention bosses should challenge suppliers to develop not only products, but tailored solutions that integrate with the strategic direction of inter-related divisions within the business.

One innovation is to link security initiatives to marketing opportunities, with digital media set to replace static advertising shrouds that cover electronic article surveillance (EAS) systems. Remote monitoring and managementof EAS, CCTV, and other technologies is also an area of focus for 2010.

However, not all initiatives need rely on capital investment; raise the profile of shrinkage management by appointing a loss prevention champion in each store, and carry out regular stock audits to identify hot products that are being merchandised without protection.

With this approach, 2010 should see improved solutions, benefiting profitability through reduced shrinkage and an uplift in sales through better on-shelf availability.

Jon Marchese is director of business development,TAG Company